Wick Company made a contract in writing to hire Zake for
five years for $150,000 per year. After two years, Zake asked
Wick for a raise of $20,000 per year. Wick at first refused but
agreed to pay Zake a $60,000 bonus after Zake completed the
fifth year of work. Zake put some pressure on Wick to get Wick
to agree to these terms. After the fifth year, Zake left and demanded
Wick pay Zake the $60,000 bonus and Wick refused.
Zake sued Wick for the $60,000 bonus. Who wins?

(c) Both Zake and Wick had a contract that was binding
for five years. For them to modify this contract, both of them
must give new consideration under common law rules which
apply to employment contracts such as this one. When Wick
agreed to the bonus, only Wick gave new consideration in the
form of $60,000. Zake did not give new consideration because he
would perform in the last three years as originally agreed. Answers
(a) and (b) are incorrect because Zake did not give new
consideration whether or not the raise was in writing. Answer
(d) is incorrect because duress needed to make a contract
voidable or void requires more than “some pressure.”